What To Do When It’s Time To Raise Your Rates

Let’s face it. Discussing money matters with clients can be  awkward, especially if you’re just starting out. It’s a necessary part of conducting business. You no sooner get in the flow of reaching a new comfort level around pricing, when you realize it might be time to raise your rates. 

Once you’re ready to increase your rates, letting your clients know ahead of time is vital. 

How And When To Tell Your Clients

The quick answer is, “As soon as you realize you want/need to raise your rates.”

The best bet is to notify your clients via email. Be sure to include:

When the increase will take effect

The exact pricing that will appear on their next invoice

How the new rates will impact your service.

Provide as much notice as possible to give your clients a chance to digest the information and to get back to you with any questions. 

Creating and attaching a FAQ document may help with routine questions and keep your communication channels free for other concerns.

With some clients, a call or Zoom conference would be more helpful (we all know those people for whom change is not a good thing). 

With that in mind, avoid over-explaining, apologizing, or back-pedaling. Keep your price increase communication short, sweet, and to the point. 

Signs It’s Time To Raise Your Rates

Although reasons may differ from person to person, here are some signs to watch for:

You are resenting your clients taking up your time. You’re hard at work on some social copy or a blog post when a client pings you on Slack and needs to speak with you now regarding a revision. 

If that elicits an eye roll rather than a “Cool! No problem!” it might be time to check in with yourself. If you feel as though your client is taking advantage of your time, it’s time to raise your rates. 

Don’t be afraid to charge whatever makes you want to go the extra mile for your clients. Your time and skills are valuable. Don’t underestimate either. 

Your clients tell you you don’t charge enough. “OMG, you only charge that much for website maintenance?!” is a sure sign to raise those rates pronto. Your clients clearly understand and know your value, and you should, too. 

There’s a high demand for your services. You have referrals from happy clients stacking up. The word is out. You’re great at what you do, and your clients are referring friends and colleagues to you. 

Worried they wouldn’t stick with you? Don’t be. Oddly enough, they will stick around. After all, they’re contacting you because they have heard about the excellent service you provide, so they’re ready and willing to pay for your time and expertise.

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